Sponsor: Community & Economic Development
Title
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Acceptance of 2024 Local Affordable Housing Aid
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Recommendation
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1. Accept the 2024 Local Affordable Housing Aid from the state of Minnesota in the amount of $6,011,349.
2. Authorize the County Manager to establish a project for Local Affordable Housing Aid in the Community and Economic Development and Housing Stability Departments.
3. Authorize the County Manager to accept future Local Affordable Housing Aid amounts from the state of Minnesota.
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Background and Rationale
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Local Affordable Housing Aid (LAHA) is a new funding source made available through the state of Minnesota to all metropolitan counties and some metropolitan cities. State statute dictates its eligible uses with a focus on affordable housing projects, programs by nonprofit housing providers and rental assistance. Ramsey County will receive $6,011,349 in LAHA funds in 2024. The first payment of $3,005,674 was received on July 9, 2024, and the second payment will arrive in December 2024.- The funding is source is a sales tax that is collected across the seven-county metropolitan area. The 2024 aid amount includes tax revenue collected between October 2023 and February 2024. Future aid amounts will collect revenue throughout the entire year.
Ramsey County plans to use its 2024 LAHA to invest in housing supply and homeless prevention programs. This direction was affirmed by the Ramsey County Board of Commissioners at a board workshop on August 6, 2024. At this workshop, the Community and Economic Development (CED) department presented plans to support and stabilize existing affordable housing buildings, particularly permanent supportive housing units. The Housing Stability department (HSD) presented plans to focus on homeless prevention programs, diversion, and rental assistance. Approximately $5,000,000 would go towards the stabilization of existing units and approximately $1,000,000 would go towards housing stability programs and assistance.
CED and HSD will work with Finance and the County Attorney’s Office to ensure that all uses of funding are allowable under state statute, that all county solicitation and procurement processes align with approved policies and procedures, and that all state reporting requirements are met.
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County Goals (Check those advanced by Action)
☒ Well-being ☒ Prosperity ☒ Opportunity ☒ Accountability
Racial Equity Impact
Ramsey County has large racial disparities between residents of color and white residents in the housing sector. These disparities include a disproportionate number of African American and American Indian residents experiencing homelessness compared to white residents. Generally, residents of color are more likely to rent than own their own home and be cost-burdened by housing costs compared to white residents. To undo these historical and lasting inequities, investment is needed in communities where wealth has been extracted over time.
LAHA funds will be used to implement eligible strategies from the Ramsey County Economic Competitiveness and Inclusion Plan by investing in projects and programs that specifically aim to reduce racial disparities in housing. These strategies include the stabilization and preservation of deeply affordable rental units. The Heading Home Ramsey Needs Assessment also illustrates the racial disparities in the homeless response system and advocates for additional resources in homeless prevention.
Community Participation Level and Impact
HSD actively engages community through Heading Home Ramsey and other collaborative decision-making groups. HSD engaged with the Stable Housing is Priority (SHiP) Collaborative to learn more about emergency rental assistance and other prevention needs and presented the learnings to the County Board in November 2023 and August 2024. In preparation for LAHA, CED engaged with affordable housing providers, landlords and developers to learn about their challenges and how additional investment could stabilize their portfolios and then expand supply to meet the community’s housing needs.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
The 2024 Local Affordable Housing Aid funds, totaling $6,011,349, must be accepted by the Ramsey County Board. The first payment for the 2024 LAHA amount was received in July 2024 and a second payment will arrive in December 2024. Per state statutes, LAHA funds cannot be used to supplant existing local investments along the housing continuum. They must be used to sustain and expand local investment.
Last Previous Action
On August 6, 2024, the Ramsey County Board of Commissioners hosted a board workshop to discuss Local Affordable Housing Aid.
Attachments
None.